The majority of children born today will live to be 100. So, is increasing life expectancy just a phenomenon for the young? Justin King, Chartered Financial Planner at Mudeford’s award-winning retirement planners, MFP Wealth Management, discusses what those of us beyond middle age need to consider for our expanding retirement years.
The increase in life expectancy has been going on for some time. If you’re a 55 year old woman today, you can expect to live for another 32 years – and there’s a 10% chance you’ll make it to 98! The narrative around increased longevity and ageing is often negative, with statistics cited of growing numbers of people living with dementia and the
general burden on society. But I would argue that whilst we’re living longer, we’re also ageing better.
By appreciating the malleability of age and challenging out-of-date stereotypes we are able to invent new stages of life to reflect our changing demographics. Just as the term ‘teenagers’ was invented in the 20th century, so the opportunity exists to reinvent ourselves many times, with the period between 50 and 70 being a prime time. Whether that be with a n new career or something else that brings true purpose, ask yourself ‘What do I want to do with my extra time?’
Education then becomes an ongoing process to support our reinvention, so consider how you need to reinvest in yourself for a fulfilled life. There’s no doubt that we want to reduce the number of years we’re in ill health, so taking positive steps to look after yourself now will pay dividends. Remember, that what you do in your 50s will influence what you can do in your 60s, and so on. Will your 95-year old self thank you for the decisions you made in your 50s or 60s?
The Financial Implication
A Scottish Widows study has shown that 54% of Brits are concerned about running out of money in retirement. That’s perhaps no surprise when we learn that 60% of 55-64 year-olds have never thought about how many retirement years they need to fund.
The question to ask is “Will I outlive my assets?” Building a lifetime cashflow to project your income and expenditure for your lifetime will bring confidence that you can afford to live the life you want. For as long as you’ve got.
To hear what global best-selling author of ‘The 100-Year Life’, Professor Andrew J Scott, has to say about the implications of living for a century, listen to our podcast interview: www.theretirementcafe.co.uk
Source: Scottish Widows 2020 Retirement Report: YouGov study Mar-Apr 2020 – all adults 18+